Illinois Tool Works (ITW): analysis in plain words
Is Illinois Tool Works cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Illinois Tool Works (ITW) is listed on the NYSE and we classify it in industrials. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Illinois Tool Works according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Illinois Tool Works (ITW) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $293.45 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 26.2x | Price over earnings per share |
| Revenue growth | +4.4% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 19.4% | Profit for every 100 of sales |
| Net debt / EBITDA | 1.8x | Years of operating profit to repay debt |
| Dividend yield | 2.40% | Annual dividend over price |
| Market cap | $83.4 billion | What the stock market values it at |
The Illinois Tool Works figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any ITW figure that is not available shows as N/A: we do not estimate it.
How Illinois Tool Works makes money
Illinois Tool Works, or ITW, is a collection of industrial businesses selling specialized components and equipment. Its segments include Automotive OEM, Food Equipment for commercial kitchens, Test and Measurement and Electronics, Welding, Polymers and Fluids, Construction Products and Specialty Products, serving manufacturers, restaurants and builders.
Over the last 12 months, Illinois Tool Works brought in revenue of $16.6 billion. For every 100 it sells, Illinois Tool Works keeps 44.3 after the direct cost of what it sells (gross margin) and 28.0 after all operating costs (operating margin).
Illinois Tool Works against its sector
To know whether a Illinois Tool Works figure is high or low you have to put it next to similar companies. This table compares Illinois Tool Works with the median of the 20 industrials companies Fintols covers, with data as of November 4, 2026.
| Figure | Illinois Tool Works | industrials median |
|---|---|---|
| P/E | 26.2x | 27.3x (20) |
| Revenue growth | +4.4% | +9.8% (20) |
| Net margin | 19.4% | 13.0% (20) |
| Dividend yield | 2.40% | 1.60% (20) |
| Net debt / EBITDA | 1.8x | 2.1x (20) |
In short, against the typical industrials company, Illinois Tool Works grows more slowly, earns a wider margin and pays a higher dividend yield. By size, Illinois Tool Works ranks number 12 of 15 industrials companies quoted in USD on Fintols.
The bull case for Illinois Tool Works
What works in favour of Illinois Tool Works, according to its figures as of November 4, 2026:
- Illinois Tool Works earns 101.7% a year on its shareholders' money (return on equity).
- Illinois Tool Works keeps 19.4 of every 100 it sells as net profit, against 13.0 for the median industrials company: a margin like that leaves money to invest, buy back shares or pay dividends.
The main risk for Illinois Tool Works
The Illinois Tool Works figures as of November 4, 2026 show no clear red flag (no heavy debt, no losses, no falling sales). Its main risk is the one built into its business: the economic cycle: when industry and trade slow, its orders fall.
Frequently asked questions about Illinois Tool Works
Is it a good time to buy Illinois Tool Works stock?
Fintols does not tell you whether to buy or sell Illinois Tool Works, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Illinois Tool Works stock trades at $293.45, 3% below its 52-week high ($303.16) and 23% above its low ($238.82). Its P/E is 26.2x against a industrials median of 27.3x, and 23.8x on the earnings analysts expect over the next 12 months. With Illinois Tool Works, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Illinois Tool Works pay a dividend?
Yes. As of November 4, 2026, Illinois Tool Works pays $6.88 per share a year, which at today's price is a yield of 2.40%. It uses 58% of its profit to pay it, which leaves room to keep paying it if profit dips. The industrials median on Fintols is 1.60%.
Is Illinois Tool Works stock expensive?
It depends on what you compare it with. On P/E, Illinois Tool Works trades at 26.2x its last 12 months of earnings: in line with the industrials median (27.3x). Including its debt, Illinois Tool Works is valued at 18.5x its EBITDA (EV/EBITDA). A high P/E alone does not make Illinois Tool Works expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Illinois Tool Works's competitors?
On Fintols we compare Illinois Tool Works with FedEx, 3M and UPS, which are also in industrials. As of November 4, 2026, FedEx is worth $77.1 billion and trades on a P/E of 17.8; 3M is worth $100.0 billion and trades on a P/E of 28.9; UPS is worth $97.3 billion and trades on a P/E of 21.2. Each has a side-by-side comparison with Illinois Tool Works below.
Illinois Tool Works competitors
- FedEx (FDX) analysis · Illinois Tool Works vs FedEx comparison
- 3M (MMM) analysis · Illinois Tool Works vs 3M comparison
- UPS (UPS) analysis · Illinois Tool Works vs UPS comparison
To understand Illinois Tool Works better
- DCF and WACC Explained: A Practical Valuation Guide
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Illinois Tool Works: industrials stocks and S&P 500 companies. Open the full ITW analysis with its valuation and scenarios. Educational content about Illinois Tool Works, not investment advice.